Economics & Islam

ABOUT THE COURSE:

For
it to maintain a sustained existence as a social entity, a religious tradition
must regulate its own economic practices and articulate a vision for a broader
economic paradigm consistent with its teachings and practices. Where religion,
as an institution, is integrated in state systems, national political economy
becomes deeply influenced by religious beliefs and practices. When religious
and state institutions are separated, a religious entity becomes a business enterprise,
whose survival or thriving is largely dependent on its ability to merge creed
and economic ideas and practices. In all cases, organized religions must
develop an economic theory to deal with external and internal pressures. In
today’s global context, where many economic, business, and finance activities
are less limited by international borders, religious institutions are hard
pressed to articulate a worldview that are consistent with their religious and
ethical values, yet, flexible enough to compete with each other and with
secular institutions. These and other issues make the study of religion and
economics vital for understanding current and future social, political,and economic trends.

Theoretically,
economics of religion became a thriving field of study that examines socio-
economic theories and methods to explain the religious behavioral patterns of
individuals, groups or cultures and the social consequences of such behavior. The
effect of competition and government regulation for religious denominations on
the quantity and quality of religious services, for instance, has been debated
lively. Religious economics is a related subject sometimes conflated with the
economics of religion. It uses religious principles to evaluate economic
perspectives and practices.

More
recently, especially after the financial crisis of 2008, scholars paid more
attention to the role of religion in sustaining economic development and
inspiring financial institutions to offer religion-compliant products and
services. Limits on interest-based loans to the growing Muslim community in
Western societies forced many banking and investment organization to create
shari`a-compliant products and services. The success of Islamist governments in
Turkey and Iran to create thriving middle and entrepreneurial classes brought
to focus the relationship between religious belief and economics.
Globalization, too, played a significant role in raising the profile of
religion-inspired financial endeavors, services, and products. Scholars and
public policy makers increasingly ask specific questions:

·Has Protestant ethic actually promoted the rise of
capitalism?

·Should religious institutions be considered businesses?

·What are the bases for subsidizing religious institutions in
some modern societies?

·Should the public continue to subsidize non-profit
organizations, including religious centers and institutions?